Even during the Liquidation Process, the parties have arrived at a settlement, then the Application filed under Section 7, 9 and 10 can be withdrawn u/s 12A of IBC – S. Rajendran, Liquidator of M/s. Arohi Infrastructure Pvt. Ltd. Vs. Tata Capital Financial Services Pvt. Ltd. – NCLT Chennai Bench
The Adjudicating Authority held that it is significant to refer to the Judgment of the Hon’ble NCLAT in the matter of Shwetha Vishwanath Shrike & Ors. vs. The Committee of Creditors & Anr. (2019) ibclaw.in 470 NCLATÂ has held that the Promoters / Shareholders are entitled to settle the matters in terms of Section 12A and in such case, it is always open to the Applicant to withdraw the Application. Further, the Hon’ble NCLAT in the matter of V. Navaneetha Krishnan -Vs- Central Bank of India, Coimbatore & Anr. (2018) ibclaw.in 298 NCLAT has held that even during the Liquidation period, if any persons, nor barred under Section 12A of IBC, 2016 satisfy the demand of the Committee of Creditors, such person may move before the Adjudicating Authority for withdrawal of proceedings. Thus, it could be seen even during the liquidation process, the parties have arrived at a settlement, then the Application filed under Section 7, 9 and 10 can be withdrawn.